Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
There are not a lot of share floating around anymore just by looking at the volumes in the last few weeks.
To generate more sells something needs to happen.
lets say that Cosmens want more share....where are they gonna get it from???
Guys...seen this before.
don't you see they choose to make this announcement just before earnings...either Cosmens need to buy a lot more at a lower price or something is in the works regarding a takeover.
Don't panic...
It all depends on your time horizon. I will keep my shares unless something drastically bad happens.
I don't think the share price will jump to much as nothing major is gonna change....I just want them to meet their lower guidance and give a decent outlook form price increases. Definitely not a dividend and maybe an outlook on how the sale is taking shape. They disappointed quite a few times so I don't know what to expect.
I have kept adding, will see if it was the right decision.
Good point Poker and if I was wearing a a tin foil hat I could say its was all planned to announce it and then cancelled it to lower the share price for "someone'' to buy around 10% however it is all speculation isn't it.
Even the profit forecast....you can announce something and declare something completely different blaming it on the macro or fuel or weather or the price of coffee beans.
We don't know what is going on however what we know is the numbers and they do not show any improvement and I doubt they will show much on this earnings.
I hope I am wrong.
I know what FGP did and that proves they are managed better.
MGC could have done the exact thing and just don't issue a dividend as it is in our detriment anyway and all of this this just shows the difference between a good mgmt and a crappy one.
Yes I think the results will indeed be mediocre at best and it will take longer for this to turn around.
Most people hold in the hope of a takeover however I think that is less likely with Cosmen increasing plus in the last 2 years we have seen the largest outflows out of uk equities which doesn't bode well as there is no appetite for low margin, low growth companies.
Yes you are right .....however why take on more debt when they could have paid some of with the 350mil they have and issue a 300mil bond?
I don't know why however even if they sell NA I don't see them paying off all the debt....I think they will keep the 500 bond to maturity.
my opinion only.
You are welcome.
Lets hope they can get on track sooner rather than later.
Obviously it all goes out the window if there is a bid for the whole company which would not be all bad if the premium is the right one.
Bull points:
1. I think they will go for the tunnel channel contract as it has the highest profit margin in the transportation sector.
2. They will sell NA for a good sum ( if you go back on my post I have stated they will do that well before it was news-maybe just a lucky guess).
3. Profit margins will improve going forward.
4. Drivers availability will improve drastically as unemployment raises.
5. Cosmens getting more involved-they know how to run this type of business.
6. Expanding on different continents -higher reach=more diversified income streams=more profit=less risk.
7. High adoption of electric busses.
8. An increase in public transport adoption.
Ok Pedro....I will lay out a few as I think is good to have opposite views as we can learn more.
1. The company has issued a dividend which was only in place for 6 months which is a huge mistake in my opinion made by the mgmt. Either keep it and bit the bullet or don't issue on at all.
2.They have stated that they will reduce debt and instead they have replaced 400mil in debt with a 500mil bond which adds 100mil to the total debt -again the opposite to what they stated in the last earnings call.
3. They downgraded the forward earnings just a couple of months after they were issued and they have done that into an improved environment-again huge mistake.
4. They have not hedged more of the fuel price when Brent was in the 60s as I think oil price will go up a lot in the next 2 years.
5.Running the Uk buss at a loss for such a long time-just get rid of it as it does more harm than good to the balance sheet.
just a few ...I am sure if I spend a couple of hours I can find a lot more.